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"the difference between the two gives the bank their profit" I don't think this is true. Banks don't lean the money from the deposits. About, why banks should
by RobertoG 9y ago
"the difference between the two gives the bank their profit"
I don't think this is true. Banks don't lean the money from the deposits.
About, why banks shouldn't increase saving accounts interest, the answer is, of course, profit. They would avoid that so much as possible.
- cpncrunch 9y ago>Banks don't lean the money from the deposits. Credit unions do, and banks have to compete with them. Also, CIBC's chief economist says "Recent history suggests an increase to the overnight rate will translate into a corresponding increase in interest earned from savings accounts", so I think I'll take the word of CIBC's chief economist over an anonymous HN user :) >About, why banks shouldn't increase saving accounts interest, the answer is, of course, profit. Credit unions will increase rates, and if banks don't they'll lose profit. That's business 101, and it's why all gas stations have virtually the same price.